From which of the following did banks earn profits under the traditional “originate to hold” model of banking?
Securitization of home loans
Making loans and earning interest that was higher than the interest paid on deposits
Charging fees to their customers for services like overdrafts and financial advice
Holding liabilities that were always a little larger than their assets.
The risk that a person who borrows from a bank may not be able to repay the loan is known as _________.
Liquidity risk. Get Economics homework help today
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